When the December payroll report comes out this Friday, economist will be looking for the creation of about 200,000 new jobs last month. While this is still slower than most market watchers would like to see, the cummulative effect of nearly five years of growth is poised to break out.

“We’ve added back 8.1 million of those 8.8 million lost jobs,” says Jeff Saut, chief investment strategist at Raymond James in the attached video. “Some time in the not so distant future you’re going to cross back above the 8.8 million [level], which suggests you’re going to get a pick up in capital spending some time this year.”

As Saut explains its, the coming surge in activity is needed, if only to replace machines and equipment he says are simply worn out. It’s not going to be the best phase of growth we’ve ever seen, Saut cautions, but it should be enough to lift growth above 3% this year. But when you mix it all in with other sector improvements like construction and low cost energy, Saut thinks there will be enough momentum to surprise slumping analysts expectations.

One such beneficiary he sees is FedEx (FDX), which he says is buying back stock and tightening its overhead.

“It ought to allow earnings to be more robust than the street thinks,” he predicts.

There are other ways to play what Saut refers to as the American Industrial Renaissance, including names like Pall Corp. (PLL), which is a play on water, and Danaher (DHR) which makes testing and automation equipment.

“We think it’s still a very investable theme” he says.

Disclaimer: Merrill Lynch is not responsible for the editorial content of this program.